Unit 6

Question 1

Strategic learning

Answer 1

Process by which organizations determine long term direction and implement strategies to accomplish long term goals, while taking into account internal and external variables

Question 2

Steps of strategic planning

Answer 2

organize/select strategic planning team
Identify the direction your company wants to pursue
Conduct strategic analysis
Define major goals
Develop action plan
Communicate that plan to others

Question 3

Definition of mission, vision and values

Answer 3

Mission: statement of purpose
Vision: The direction and goals you want to see your company accomplish
Values: The principles that guide your actions (basically why your doing what your doing)

Question 4

What is SWOT stand for?

What does SWOT assess?

Answer 4

Strengths, weaknesses, opportunities, threats

Assesses: Internal strengths and weaknesses and external opportunities and threats.

Question 5

What does STEEP stand for?

Answer 5

Social, Technological, Economic, Ecological, Political

Question 6

What is a market analysis and how is it different from SWOT analysis?

Answer 6

Market studies the dynamics of a market within an industry.

SWOT analysis studies internal strengths, weaknesses, opportunities and threats

Question 7

What is SMARTER goals?

Answer 7

Specific, Measurable, Acceptable, Realistic, Time based, Extending, Rewarding

Question 8

Why do we monitor and evaluate the strategic plans we implement?

Answer 8

To determine whether we are fulfilling the strategic plan. This time is important as it can uncover ineffective strategies and outcomes in the plan and can provide direction of where changes should be made.

Question 9

How to communicate a strategic plan

Answer 9

Use simple and straightforward language that is easy to understand, be prepared, tell the truth, make sure the person understands the message you are sending, be consistent, be brief

Question 10

4 requirements for effective strategic execution

Answer 10

Realistic expectation of outcomes
Sound judgment of those executing the plan
Implement the monitoring and evaluation plan
Promote high employee performance

Question 11

Benefits and criticisms of strategic planning

Answer 11

Benefits: Promotes morale, motivation and commitment, enhances processes and financial performance, facilitates better comprehension of goals
CriticismL Regarded too rigidly by organizations, hinders creativity and innovation, fail to influence overall direction of the organization

Question 12

Why does planning go wrong sometimes?

Answer 12

Numerous factors are needed in order to thrive. Bryson says employees, strategies, motivation, skills and coalition failure could be reasons why planning can go wrong.

Question 13

Sound judgement

Answer 13

Not all decisions carry the same weight. Prioritizing is necessary and more pertinent tasks should receive higher priority.

Question 14

Steps of decision-focused strategic planning

Answer 14

Establish timeline that assigns responsibility for carrying out tactics. Identify your resources and establish a budget and describe that to your employees. Always monitor and evaluate your business decisions.

Question 15

Pros and cons of the various business entities

Answer 15

Sole prop: Easy to form. favorable taxation, full control.
General partnership: easier than a corporation. favorable taxation. Easier to raise capital since you have partner.
LL partnership: Same as partnership except limited partners are not at risk of asset removal if the business goes under.
Corporation: Ownership is equally transferable, Owners are liable,
S corp: Same as corporation except single taxation and less regulatory control

Question 16

When might we need to conduct a feasibility study?

And what are the 4 components?

Answer 16

This test might be used to assess the need for a new business, service or product.

1. Product/service
2. Industry/target market
3. Organizational feasibility
4. Financial feasibility

Question 17

What are the components of a business plan?

Answer 17

1. Executive summary (main components)
2. Business profile (Reasoning, plan, mission, vision)
3. Products/services offered
4. Analyze the market and plan accordingly
5. Operations and m7.gmt (assign organizational/structural operation, assign responsibilities, workflow, resources and expenses)
6. Assess economical and financial
7. Summarize and conclude the main points
8. Appendix

Question 18

Job analysis

Answer 18

Collects info about the duties, responsibilities, skills and work environment of a particular job

Question 19

Skills inventory

Answer 19

A tool used to determine necessary attributes to fulfill expectations developed in job analysis.

Question 20

Factors that play into strategic location of pharmacy

Answer 20

Access, location, zoning, population (target), visibility, costs

Question 21

Compare/ contrast the various organizational structures including (dis)advantages of each.

Answer 21

Flat organization: No difference in authority between employees and managers. Supports the statement that employees are more productive when they are more directly involved in the decision making process.
Hierarchical: Limited expectations, certain positions are subordinate to other entities of the organization. Advantages include clearly defined authority and responsibility, defined mechanisms for promotion, effective use of specialized knowledge and loyalty to a particular department.
Matrix: team members from multiple disciplines within an organization are brought together to work on projects and achieve goals. Sometimes difficult to coordinate tasks.

Question 22

Advantages/disadvantages of leasing

Answer 22

Advantages: Low or no down payment, allows for latest technology
Disadvantages: Higher interest rates, no ownership, opting out of lease can be expensive

Question 23

Advantages/disadvantages of buying

Answer 23

Advantages: Equipment/building is owned, tax incentives
Disadvantages: Initial cash amount needed will be high and equipment or building may not have high resale value.

Question 24

Identify and describe various sources of funding available to start a new business

Answer 24

SBA loan: Helps to receive a loan from bank or lender. Difficult for small business owners to get this loan.
Angel investors and venture capitalists
No business too small for angel investor. VC is a group of individuals that offer business advice and lend money for a portion of the business. Not for small business owners.
Credit cards: Very high interest rates. Not for start up funding.
Bank loans
Home equity loans

Question 25

Explain the 2 types of bank loans

Answer 25

Secured loans: Use borrowers assets as collateral to secure the loan if borrower defaults.
Unsecure: Difficult to obtain. No collateral needed.
Both bank loans are better for established businesses, not start up businesses.

Question 26

What is home equity loan?

Answer 26

Use of personal home to obtain a loan. Low interest rates compared to credit cards. Yes, you can loose your home.

Question 27

What are the 5 C’s of credit?

Answer 27

Character, capacity, capital, collateral, conditions

Question 28

What is cultural competence?

Answer 28

Ability to interact effectively with people of different cultures.

Question 29

Components of continuing education?

Answer 29

Learn, analyze, question, act